ContractsCounsel Logo

Lawyer for Investment Contract

Clients Rate Lawyers on our Platform 4.9/5 Stars
based on 7,528 reviews
Home Blog Lawyer for Investment Contract

Jump to Section

Need help with an Investment Contract?

Create a free project posting

A legal investment contract protects the investor’s financial and future return on investment.

An investment contract lawyer is an experienced financial lawyer who helps clients secure legally binding, protected investments.

Lawyers for investment contracts adhere to the strict protocol and legal proceedings that outline all investment contracts under The Securities Act of 1933. They ensure that an investor’s money is not misappropriated and that their contribution to a company or other party counts as a legal investment.

Here is an article that defines investments in contracts related to annuities.

What Does a Lawyer Do for an Investment Contract?

An investment contract lawyer drafts, reviews, and manages clients’ legal documents for various investments.

An investment contract itself can include many types of documents. In business and the court, investment has a specific definition that constitutes the requirement of a legal contract.

To be recognized as lawful and legitimate, an investment must be provided as a lump sum of money to an entity in exchange for benefits, with the expectation of future profit. This future profit is referred to as the return on investment, or ROI.

The profit in an investment contract can vary. Some are direct, e.g., a portion of a company’s revenue, or indirect, e.g., tax benefits.

An investment contract's most important distinguishing factor is that the investor does not partake in the business. Their investment can facilitate a company’s growth, but they do not personally involve themselves in its operations.

Because they are so diverse, investment contracts come in many forms and have unique provisions. However, some common terms you are likely to see in any investment contract are:

  • Investor – The person investing money into a company for future profit.
  • Shareholder. Someone who owns a portion of a company through shares. Investors can also become shareholders.
  • Investment. The monetary amount that an investor provides to a company to receive benefits at a later period.
  • Recitals. Details about the investment that will be made and any other important factors relating to the investment agreement.
  • Agreements. All the terms and conditions within the investment contract outline the deal between the investor and the company.
  • Restrictions. Limitations of the investor within the company relating to ownership.
  • Milestones. Benchmarks that the investor and company agree upon. Each milestone must be agreed upon before the next investment phase can proceed.
  • Confidentiality agreement . A provision in which both parties agree that the details of their investment agreement will remain confidential and that no information will be disclosed to third parties.

Here is an article with ContractsCounsel’s guide to investment contracts, including more key terms and examples.

How Much Does an Investment Contract Cost?

The average investment contract cost varies significantly by each agreement. This is because the type of investment, the amount of money being invested, and the terms and conditions involved all influence the price of the final document.

A lawyer for investment contract services will likely charge an hourly fee. However, hourly rates for attorneys vary, and they may require a retainer ahead of time. A retainer agreement helps lawyers secure their payment for a project.

ContractsCounsel’s marketplace reveals that the average cost of a project involving an investment contract is $575.

Suppose you are unsure what type of contract you need or what provisions to include for legal validity. In that case, consulting with a lawyer for an investment contract is the best solution.

Here is an article with free investment contract templates you can review to understand what type of documents you need.

Types of Investment Contracts

Here is an overview of the most common types of investment contracts and what they entail.

1. Convertible Note

A convertible note is a type of startup investment for companies in their initial stages of capital funding. They do not require company valuation, so they are a common way for startups to raise capital early in their business.

The convertible note cost varies. When someone invests with a convertible note, the startup will eventually have to repay their principal investment plus interest.

2. Stock Purchase Agreement

Buying stocks directly from a company is often more complex than purchasing them through the stock market. As a result, many people who want to go this route use a lawyer to draft a stock purchase agreement.

People who purchase stock in a company become shareholders, so a stock purchase agreement can also be known as a share purchase agreement (SPA). Sometimes, employees are offered stock purchase agreements as part of their employment contracts.

3. Equity Purchase Agreement

An equity agreement requires an equity commitment letter in cases of private equity buyouts. For example, suppose a shareholder sells their stock or shares in a company to another shareholder or third party. In that case, they will use an equity purchase agreement.

Not to be confused with an asset purchase, an equity agreement grants the buyer ownership of the actual company.

4. Restricted Stock Agreement

A restricted stock agreement has built-in provisions that limit the investor from taking equity ownership unless certain circumstances or events transpire.

Restricted stock agreements are common among companies that allow employees to purchase shares. They will only be able to receive their shares or purchase shares at an exclusive rate after they meet certain benchmarks, whether that be time periods or performance metrics.

5. Commission Agreements

Commission agreements, also known as a portion of revenue agreements, entitle the investor to a fixed percentage of the company’s profits. Unlike stock or share investments, where the investor owns a portion of the company, the investor has no equity in a commission agreement.

The exact limit of how long an investor can collect commission is left to the company’s discretion. However, no statutes of limitations restrict the amount of time an investor can collect a portion of revenue, so using the appropriate legal provisions is important.

Here is an article with examples of investment agreements and key details to include in them.

Meet some lawyers on our platform

Melissa L.

4 projects on CC
View Profile

Spencer R.

3 projects on CC
View Profile

Zachary J.

184 projects on CC
View Profile

Justin K.

29 projects on CC
View Profile

Do I Need a Lawyer for an Investment Contract?

Legal investment contracts must adhere to The Securities Act of 1933. Without following the necessary legal steps, an investment is not legally enforceable. This means that a company is not obligated to fulfill its end of an agreement that does not adhere to the law.

The Securities Act of 1933 protects investors’ money and prevents security fraud. In investment, security is an exchangeable (fungible) asset with monetary value. Examples of investment securities include equity and debt.

Depending on your investment type, your contract will need a specialized format and terms and conditions to protect your investment. Likewise, investment contracts written by lawyers prevent investors from leveraging unfair advantages over companies and other entities.

Working with a lawyer can help you determine what type of investment contract you need and what types of provisions to include. They can also advise you on negotiable terms and help you get the best deal for your investment.

Companies that have received an investment offer can also consult with a lawyer to draft an investment contract. This contract can entice the investor while still securing the company’s best interests.

Here is an article with more information about financial securities.

Post a project in ContractsCounsel’s marketplace to receive flat fee bids from lawyers for your project. All lawyers have been vetted by our team and peer-reviewed by our customers for you to explore before hiring.

Need help with an
Investment Contract?

Create a free project posting

Meet some of our Lawyers

Michael S. on ContractsCounsel
View Michael
5.0 (4)
Member Since:
April 16, 2023

Michael S.

Managing Partner
Free Consultation
Los Angeles, California
28 Yrs Experience
Licensed in CA, NY
Harvard Law School

I began my career at "big law" firms, worked in-house for 14 years, and now have my own practice, providing big law quality at small firm rates. My practice focuses on strategic and commercial transactions, including M&A, preferred stock and common stock offerings, asset purchases and sales, joint ventures and strategic partnerships, stock option plans, master services agreements and SOWs, software development and license agreements, SaaS agreements, NDAs, employment and consulting agreements. I also manage corporate governance, advise boards and executives, and act as outside general counsel. I represent clients across the country and around the world.

Donya G. on ContractsCounsel
View Donya
4.9 (58)
Member Since:
July 11, 2020

Donya G.

Contract, E-Commerce Attorney & Dispute Resolution Specialists
Free Consultation
United States
23 Yrs Experience
Licensed in CT, NY
Pace University School of Law

I am a licensed and active NY Contracts Attorney, with over 20 years of diverse legal and business experience. I specialize in reviewing, drafting and negotiating commercial agreements. My practice focuses on working with small business clients as well as clients from international brokerage firms on acquisitions, especially in the Ecommerce space; drafting, negotiating, reviewing and advising on business agreements; ; breach of contract issues, contract disputes and arbitration. I am licensed to practice in New York and Connecticut, and am a FINRA and NCDS Arbitrator. My experience includes serving as General Counsel to small businesses. This entails reviewing, updating and drafting contracts such as employments agreements, asset purchase agreements, master services agreements, operating agreements and a variety of business and commercial contracts. Additionally, I assist clients with business strategies, contract disputes and arbitration. My diverse experience allows me to give my clients a well-rounded approach to the issues they face. I have been at top AML law firms; a Vice President at an Investment Bank, a Civil Court Arbitrator presiding over cases in contract law, commercial law, a Hearing Officer, presiding over cases and rendering written decisions, and a Judicial Clerk to a Civil Court Judge. It would be a privilege to assist you and your business with my services.

Michael K. on ContractsCounsel
View Michael
5.0 (37)
Member Since:
June 28, 2021

Michael K.

Associate Counsel
Free Consultation
Miami, FL
5 Yrs Experience
Licensed in FL
St. Thomas University School of Law

A business-oriented, proactive, and problem-solving corporate lawyer with in-house counsel experience, ensuring the legality of commercial transactions and contracts. Michael is adept in reviewing, drafting, negotiating, and generally overseeing policies, procedures, handbooks, corporate documents, and more importantly, contracts. He has a proven track record of helping lead domestic and international companies by ensuring they are functioning in complete compliance with local and international rules and regulations.

Ken S. on ContractsCounsel
View Ken
Member Since:
July 6, 2023

Ken S.

Vice President
Free Consultation
2 Yrs Experience
Licensed in NJ
Rutgers Law School - Newark

Transactional attorney specializing in mergers & acquisitions. Other services include business formation, contract review, and general corporate matters.

Keren G. on ContractsCounsel
View Keren
Member Since:
July 13, 2023

Keren G.

Free Consultation
New Orleans
15 Yrs Experience
Licensed in CA, LA, NV
University of California, Davis School of Law

Keren E. Gesund has extensive litigation expense. She has successfully defended and prosecuted claims against debt collectors, banks, credit reporting agencies, subcontractors, manufacturers and consumers who have suffered harassment or injury. She handles contentious business and commercial cases for both plaintiffs and defendants in state and federal court.

Rob D. on ContractsCounsel
View Rob
Member Since:
July 8, 2023

Rob D.

Free Consultation
Bluffton, SC
9 Yrs Experience
Licensed in SC
University of Dayton School of Law

Attorney with 10 years experience focusing on corporate transactions and formations, real estate, and estate planning.

Christi H. on ContractsCounsel
View Christi
Member Since:
July 8, 2023

Christi H.

Free Consultation
Richmond, VA
18 Yrs Experience
Licensed in VA
Regent Law School

I have been practicing law for 18 years. I have worked in a mid-size firm environment where I was named a partner in 2014. In 2016, I left to start my own practice and work part-time. I handle most all corporate and transactional work and serve has outside general counsel for a number of companies

Find the best lawyer for your project

Browse Lawyers Now
Learn About Contracts
See More Contracts
other helpful articles

Need help with an Investment Contract?

Create a free project posting

Want to speak to someone?

Get in touch below and we will schedule a time to connect!

Request a call

Find lawyers and attorneys by city